Judge approves Camden Diocese plan to pay $87.5 million to clergy sex-abuse victims

A U.S. bankruptcy judge has approved a settlement agreement clearing the way for the Diocese of Camden to pay $87.5 million to about 300 survivors of clergy sexual abuse.

The settlement, one of the largest involving the Roman Catholic Church in the United States, was announced in April 2022 and finalized last week.

The Camden Diocese said in a Thursday announcement that U.S. Bankruptcy Judge Jerrold N. Poslusny, Jr. in Camden had approved the plan filed by the diocese and the committee representing the abuse survivors.

The diocese filed for bankruptcy protection in October 2020 after a new state law expanding the statute of limitation on claims led to dozens of lawsuits being filed.

“This decision opens a new chapter in the Diocese of Camden, allowing us to finally offer substantial reparations to survivors harmed by sinful priests dating back more than six decades,” Camden Bishop Dennis Sullivan said in a letter posted on the diocese’s website.

“This settlement will enable the diocese to meet its obligations to the survivors of clerical abuse while we continue to serve the parishes, schools and those in need who utilize our social services throughout South Jersey,” Sullivan said.

The settlement provides for the establishment of a trust that will be funded with $87.5 million from the diocese and related Catholic entities over five years. The settlement also provides for new child protection measures.

The diocese serves about 486,000 Catholics in Camden, Gloucester, Cumberland, Salem, Cape May, and Atlantic Counties.

“Once again, I express my sincere apologies and prayers to all those who have been affected by sexual abuse in our Diocese,” Sullivan said. “I pledge my continuing commitment to ensure that this terrible chapter in the history of the Diocese of Camden, New Jersey never happens again. "

Jeff Anderson, a lawyer representing victims, said in a statement: “This moment comes after decades of survivors suffering, and it is their courage and their voice that is making the Diocese accountable and safer for kids. It is the survivors deserving of credit, who courageously stand in Camden and across this nation. From their courage and collective action, brings about real reckoning.”

Anderson’s law firm said that the settlement was approved by the judge despite objections from several insurance companies that did not contribute to the deal.

The settlement, which has been modified since 2022 to meet the judge’s legal requirements, received support from 99% of survivors who voted on the bankruptcy case and will allow them to pursue the insurance companies, Anderson’s law firm said.

Jeffrey D. Prol, a lawyer with Lowenstein Sandler LLP, which represents the official committee of survivor claimants, said in a statement: “We look forward to facilitating an expeditious distribution to survivors of sexual abuse, who have been, and remain, the real heroes in our battle to bring some semblance of justice for them.”

Prol’s law firm said that the settlement was the second largest cash payment by any Catholic diocese in bankruptcy to date, and survivors expect to pursue “many millions more” in compensation from the insurance companies.